- The latest annual industry report by the BTHA and Circana confirms year-on-year growth of 6% with strong demand for toys throughout the year
- Building sets emerge as the fastest-growing category, rising 25%, closely followed by Action Figures (+16%), and Games and Puzzles (+15%)Licensed toys strengthen their market position, accounting for 38% of total toy sales following a year of blockbuster film releases in 2025
- Results point to an evolving era of play, as families increasingly engage with toys through shared entertainment, nostalgia, and cross-generational appeal
Annual industry insights from the British Toy & Hobby Association (BTHA) and global market research company, Circana, unveiled today at Toy Fair in London, show the UK toy industry returned to growth in 2025 – its first growth year since the COVID-driven surge of toy sales in 2020.
Figures reveal toy sales were up 6% year on year, contributing to a sector now worth £3.9 billion. This marks a significant turnaround for the UK toy sector after several challenging years.
Toy sales increased every month of 2025 compared to 2024, showing steady recovery. Whilst the ‘kidult’ category continued its upward trajectory for those purchasing toys over the age of twelve (+10%), children’s toys for under twelves also delivered solid growth in 2025, with sales up 4% year on year, and representing 67% of overall market expenditure.
Six out of eleven major toy supercategories recorded growth in 2025, demonstrating breadth and balance across the market. Top-performing categories included Building Sets, which grew 25% and was led by LEGO ranges and Formula One, two of 2025’s fastest growing toy properties.
Traditional Games & Puzzles grew 15%, driven by strategic trading card games such as Pokémon. Action Figures & Accessories grew 16%, strengthened by film tie-ins such as How To Train Your Dragon, Jurassic Park, and K-Pop Demon Hunters and generated by a rush for early toy releases in December. The Vehicles category grew by 8%, aided in part by the renewed popularity of Formula One racing in 2025, with infant and preschool toys enjoying their best performance in over eight years.
Boosted by a year of stand out entertainment properties across cinema, streaming, and sport; licensing continued to power the sector, up 16% year on year, and now accounting for 38% of the total toy market. Film-driven toys are now 16% of all toy sales (+11%), following a year of box office hits in 2025, with cinematic hits including Minecraft, Pokémon, Lilo & Stitch, and Jurassic World positively driving product lines from the likes of Spin Master Toys, Bladez Toys, and Simba Smoby UK.
Other entertainment channels such as TV and streaming grew 3%, with the help of global hits Stranger Things and The Traitors, whilst video game-linked toys surged 47% driven by Fortnite, Minecraft, and Sonic. The fastest-growing entertainment segment was racing, which soared 193%, reflecting the ongoing popularity of motorsport.
A breadth of demand and strong cross-generational appeal of the market was reflected in best-selling toys of 2025. Among the top selling items were LEGO’s Botanicals flower set, the screen-free Toniebox audio player from Tonies, and Jazwares’ soft-toy phenomenon Squishmallows, which remained a top-ten bestseller.
Commenting on the figures, Kerri Atherton, Head of Public Affairs at the BTHA, said: “The return to growth in 2025 marks a pivotal moment for the UK toy industry after many challenging years. What is particularly encouraging is the consistency behind the recovery when trading conditions have remained tough, with toy sales increasing every month of the year and growth evident across both children’s toys and the expanding kidult market.
“This performance reflects a strong interest in toys and the sector’s ability to engage a wide audience through innovation, entertainment-led play, and strong licensing partnerships. The influence of film, streaming, and sport demonstrates an evolving era of play, where toys are increasingly embedded in wider cultural moments, enjoyed by all the family. Whilst recognising there are still challenges facing businesses and consumers, the toy industry will look to build on this success going into 2026.”
A number of popular trends continued to grow year-on-year including the collectibles craze, where more affordable items are collected as part of a series. Collectibles toys grew 12%, in 2025 driven by popular brands such as Pokémon and Funko POP. A variety of different cultural influences further played a role in shaping many market-moving trends, with brands such as K-Pop Demon Hunters, One Piece, Dragon Ball Z, and Hello Kitty contributing to the year’s collectibles boom with no signs of slowing into 2026. Notably, Pokémon was the UK’s top gaining toy property in 2025 generated by the popularity of strategic trading cards.
The average toy price rose to £12.37 (+5%), reflecting inflationary factors. Toys within the £30 – £50 price bracket gained most traction in 2025 with consumers choosing to invest in play-led experiences, with toys costing less than £5 revealed as the only pricing bracket in decline.
Melissa Symonds, Executive Director, UK Toys, Circana said: “2025 has marked a clear turning point for the UK toy market, with infant and preschool delivering their strongest performance since 2017. Innovation has been a key driver of that growth, with products such as Toniebox and LeapFrog resonating strongly with parents and younger children alike. Looking ahead, an action-packed year for film and TV is set to further energise the market. As we’ve seen with franchises such as Minecraft, Stranger Things, and Wicked, toys that allow both children and adults to engage with the worlds they love are playing an increasingly important role in bringing joy, connection, and fandom into everyday life.”
Notes to Editors
Figures from the report are based on the latest and updated methodology from Circana.
Sources: Circana (UK) Ltd, GB, Consumer 360˚ Service & UK, Retail Tracking Service, Jan – Dec 2025
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For questions about the data, please contact the Circana PR team – [email protected]
About Toy Fair
Toy Fair is the UK’s largest dedicated toy, game and hobby trade exhibition taking place at Olympia London. The event takes place over three days at the end of January each year and plays host to hundreds of exhibitors, from startups to some of the biggest toy companies, launching thousands of new toy lines.
Toy Fair 2026 takes place from Tuesday 20th – Thursday 22nd January. Press day is Tuesday 20th January. Please note the opening times are 09:00-18:00 Tuesday 20th and Wednesday 21st, and 09:00-16:30 Thursday 22nd January.
About the BTHA
The British Toy & Hobby Association was established in 1944 to represent the interests of British toy manufacturers and to raise standards of practice in the industry. Today it has more than 150 members ranging from international toy giants to small family-run businesses that together account for more than 80% of the UK toy market. Membership of the British Toy & Hobby Association shows the member’s commitment to adhere to the BTHA Code of Practice under the umbrella of the Lion Mark which includes rules covering ethical and safe manufacture of toys, toy safety, a ban on counterfeit goods, an assurance to market responsibly, a commitment to improving sustainability and a desire to promote the value of all play through support of the Make Time 2 Play campaign. Our members are manufacturers committed to making good quality toys in a responsible way. The BTHA also administers the Toy Trust – the industry’s charity.
About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behaviour driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy. Learn more at circana.com.
